Suppose that the probability that LIBOR (London inter-bank offered rate)will increase next trimester is 0.025.Assume also that the probability that your company will open a new branch overseas is 0.20.If the probability that at least one of the two events occur, i.e., LIBOR increases and/or your company opens a new overseas branch, is 0.21, what is the probability that both events occur?
A)0.225
B)0.015
C)0.010
D)0.007
E)0.005

Question

Quizplus · Accepted Answer

The probability that both events occur can be found using the formula: P(A and B) = P(A) + P(B) - P(A or B). Substituting the given probabilities, we get 0.025 + 0.20 - 0.21 = 0.015.

Suppose That the Probability That LIBOR (London Inter-Bank Offered Rate)will